Google Acquires Cloud Security Startup Wiz for $32 Billion in Landmark Deal
Google has made history by signing a definitive agreement to acquire Wiz, a New York-based cloud security startup, for $32 billion in a cash transaction. This acquisition, which was announced on Tuesday, is Google’s largest-ever purchase and demonstrates the tech giant’s commitment to enhancing its cloud security capabilities in an era of advancing artificial intelligence and increasing cybersecurity threats.
A Transformational Deal for Google Cloud
Established in 2020, Wiz has quickly gained prominence under the guidance of its co-founder, Assaf Rappaport. Major enterprises have made it their preferred partner due to its cloud security solutions, which include prevention, active detection, and response tools. Google has confirmed that Wiz will be vital to its cloud business, enhancing its security services in multi-cloud environments like Amazon Web Services, Microsoft Azure, and Oracle Cloud.
“Google Cloud is a leader in cloud infrastructure, with deep AI expertise and a track record of industry-leading security innovation,” Google stated in its release. “Bringing all this to Wiz will help make their solutions even better and more scalable, benefiting customers and partners across all major clouds.”
Wiz’s Strategic Shift and Google’s Pursuit
Wiz’s decision to walk away from a reported $23 billion acquisition offer from Google in July 2023 is the reason for the deal. At the time, the startup had made a statement that it wanted to pursue an initial public offering (IPO) instead, citing concerns about antitrust scrutiny and investor considerations.
“Saying no to such humbling offers is tough,” Rappaport wrote in a memo to employees last year, as reported by CNBC.
Wiz set ambitious goals before the acquisition talks, such as achieving $1 billion in annual recurring revenue and going public. With Google’s support, the company now sees the opportunity for accelerated innovation.
“Becoming part of Google Cloud is effectively strapping a rocket to our backs: it will accelerate our rate of innovation faster than what we could achieve as a standalone company,” Rappaport said in a blog post on Tuesday.
The agreement makes Google Cloud more competitive against industry giants like Microsoft, who have their security solutions. Wiz’s rapid success, achieving $100 million in annual recurring revenue within 18 months, demonstrates the demand for cutting-edge cloud security solutions. By integrating Wiz into its cloud ecosystem, Google positions security as a key differentiator in the cloud computing industry. Despite the potential for regulatory scrutiny, some Wall Street analysts remain optimistic about the current U.S. Large-scale tech acquisitions may be more favorable for the administration under President Donald Trump. Despite its dominance in online search, Alphabet, Google’s parent company, is still facing ongoing antitrust lawsuits.
What’s Next?
Google anticipates finalizing the acquisition in 2026, subject to regulatory approval. Until then, Wiz will remain independent and ensure its security products are accessible across multiple cloud platforms.
If it is successfully closed, this acquisition will redefine Google Cloud’s security posture and further shape the competitive landscape of enterprise cloud services.
Google’s resources and Wiz’s expertise could combine to create a game-changing deal in cybersecurity, providing businesses worldwide with more robust and innovative cloud security solutions.
